Canadian minerals company First Phosphate announced the close of a second tranche of its private placement financing, which raised $7.5 million gross.
An initial offering, closed on 22 December, raised $2 million gross. Total so far after costs is $7,185,375. It said it also secured a revolving credit facility of $2.1 million. The company corrected previously disclosed figures on finder’s fees, insider line of credit and oversubscription factor for the first two tranches. It said the offering was oversubscribed by 275% (not the previously stated 375%).
Company CEO, John Passalacqua, said: “We are now in position to be able to drill this winter and begin uncovering the full extent of the Bégin-Lamarche high-purity igneous rock phosphate horizon at only 70 km from the deep-sea Port of Saguenay.”
Proximity to port and access to infrastructure and workforce are the single largest determinants for the economic viability of any phosphate project, he said. Bégin-Lamarche ticks all these boxes. “We feel that it will become the first phosphate mine to see production in Quebec,” he said.
Writing on LinkedIn, Passalacqua said: “Thank you for granting my Christmas wish, Santa Claus. Saguenay-Lac-St-Jean is now one step closer to becoming the LFP Battery Valley of North America this year.”
A potential final tranche of financing is scheduled to close on or about 10 January.
